Treasury Yields Send Bitcoin Skyrocketing $416 Billion in Just Nine Weeks

Bitcoin's market value surged $416 billion over nine weeks as investors scrambled to capitalize on lower Treasury yields. The price increase pushed Bitcoin past $79,000 and into the global top 13 largest assets by market capitalization.

The catalyst for this rally was a surprise announcement from the Treasury on August 20-21 that expanded its long-term bond buyback program. This decision increased demand for existing bonds, pushing yields lower and making risk assets more attractive.

As a result, capital flowed into crypto, with Bitcoin recording a record-breaking weekly gain of $14,264, a 22.7% jump in just seven days.

The Treasury's policy shift also triggered a short squeeze that liquidated over $3 billion in bearish positions within 48 hours. This accelerated the price increase beyond organic demand alone and created a feedback loop that fueled further growth.